HomeMy WebLinkAboutRDA 03 MIDTERM REVIEW 12-01-97 RDA NO. 3
12-1-97
I n t e r- C o rn
DATE:
DECEMBER 1, 1997
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
REDEVELOPMENT AGENCY STAFF
MIDTERM REVIEW AND PUBLIC HEARING IN FIVE YEAR IMPLEMENTATION
PLAN
SUMMARY: Redevelopment Law requires a public hearing at least once during the five year
term of the Agency's Implementation Plan to review the Ageney's progress in meeting its
defined goals and objectives
RECOMMENDATION
It is recommended th_at the Agency:
1. Open Public Hearing and request a
Implementation Plato
2. Receive public testimony.
3. Close hearing
summary staff report from staff on the Agency's
FISCAL IMPACT
No fiscal i~nact.
BACKGROUND
On December 5, 1994 the Tustin Community Redevelopment Agency, in accordance with State law,
adopted an lmr~lementation Plan for the Redevelopment plans for the Town Center and South Central
Redevelopmer~t Project areas for fiscal years 1995-1996 through 1999-2000. The Implementation Plan
was congx)sed of two parts, a five-year plan for Redevelopment activities and a five-year plan for
housing activities. The Plan reviewed the goals objectives of each Project Area, the Agency's strategy
to achieve these goals, anticipated projects and expenditures, and included a description of how goals,
objectives and anticipated project expenditure would eliminate blight. The Plan also described the
statutory requirements for the housing set-aside fund and anticipated expenditures of these funds. The
intent of the Plan was not to restrict the Agency's activities since conditions, values, expectations,
resources and needs may change over time. Rather, the Plan was intended to outline expectations of
the Agency for the five year period (FY1995-96 through FY 1999-00).
Redevelopment Law requires that the Agency conduct a md-term review of the Implementation Plato
To comply with this requirement, staff has undertaken a review of the Implementation Plan and has
provided would vary depending on the needs of individual projects. Anticipated assistance
available included, but not be limited to land assembly for resale to developers, land preparation,
off-site improvements, fee payments, design and engineering assistance, development loans (for
those costs allowed by law), and development of parking.
Status. The Agency has been actively pursuing development agreements to initiate redevelopment
activity. One of these projects has been the redevelopment of the Gateway Center also known as
E1 Camino Real Plaza. The Agency worked for over 1½ years on this project soliciting Requests
for Qualification, Requests for Proposals and performed financial analysis on the proposals.
However, the property owner and staff were unable to reach terms on a development agreement
for the property.
Another project has been the redevelopment of the Perfit Property located at 135 East Main
Street. Due to the lack of response from the property owner to inquires made by the Agency, the
Agency initiated proceedings in the court to acquire the property. Once acquired, the Agency will
solicit proposals from the development community for the redevelopment of the square block
parcel.
Owner Assistance/Commercial Rehabilitation Program.
Project Description. This program consisted of financial assistance in the form of loans and/or
grants for seismic retrofitting, historic preservation, building and safety code compliance, building
renovation and facade improvements.
Status. Specific projects included the seismic retrofitting of two commercial properties in Old
Town (Old Town Hardware 115 West Main Street; and Surfas Furriers, 355 E1 Camino Real),
and a facade rehabilitation of the Thompson office building located at 101 West Main Street.
Additional applications being processed for commercial rehabilitation projects include:
· The Black Sheep Bistro, 303 E1 Camino Real
· The McCharles House, 335 South C Street
· Dr. Stanford Optometrist, 190 E1 Camino Real
· Rick Rengle Architects, 333 E1 Camino Real
· Scott Sino Construction Services, 155 East 2~ Street
Business Assistance and Outreach Program.
Project Description. This ongoing program is designed to support the retention of existing
business and attraction of new businesses. Expenditures include but may not be limited to the
following such items: brochures, marketing materials, and support for Economic Development
Council activities.
Status To date, significant progress has been made in this progran~ A City of Tustin marketing
brochure has been completed. A newsletter detailing the accomplishment of the Redevelopment
Agency has been completed and distributed to every business and residence in the City. The script
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of the video to be used as a marketing tool has been completed and the video will be completed in
1998. Other projects that have been funded have included the services of a consultant to assist
Old Town businesses initiate the Tustin Old Town Business Association and funding for a portion
of the first year operation of this organization.
Parks and Recreation Services Programs
Columbus Tustin Park.
Project Description. This program was to provide additional improvements that were necessary
for the completion of the Columbus Tustin Park renovation.
Status. The construction of the gymnasium and additional park improvemems were completed in
Fiscal Year 1995-96.
Peppertree Park Renovation Project.
Project Description This project will provide for improvements to existing facilities at peppertree
Park including construction of new restroom facilities.
Status. During FY 1997-98 funds were budgeted for the design of improvemems and
construction is scheduled to start in FY 1998-99.
Parks and Recreation Services Facilities.
Project Description The Agency proposed to conduct an improvement program for the City's
Senior center in conjunction with the improvements to be done at Peppertree Park..
Status The scope of work for this project is being fmali7.ed and funding sources identified. Work is
anticipated to start in FY 1998-99.
Traffic, Utilities and Flood Control Facilitien
Holt Avenue/SR 55 Storm Drain Project.
Project Description. The Agency will fund improvemems to the storm drains between Holt
Avenue and SR 55.
Status. Given a number of technical difficulties, design began several fiscal years ago but halted
due to the engineering firm involved going out of business. Design will be restarted in FY 1997-
98 with the actual construction pending completion of other higher priority projects.
Street Improvement Program.
Project Description. This project proposed to repair, upgrade and improve existing streets within
the project areas as needed.
Status. This project's category is ongoing. The Agency has completed a number of programs that
have improved the traffic circulation system. These projects have included the Irvine Boulevard
pavement striping in the project area. Projects currently underway are the rehabilitation of
Newport Avenue, Main Street and Prospect Avenue.
Utilities Improvement Program.
Project Description The Agency will undertake the undergrounding of utilities in the City's
historic Old Town area.
Status. This project is ongoing, with work being done on listed priority basis in conjunction with
the availability of undergrounding funds available for Southern California Edison.
SOUTH CENTRAL PROJECT AREA
The Implementation Plan estimated that there would be approximately $18.65 million spent on
street improvements, economic development, recreational facilities, traffic control facilities, and
flood control facilities in the South/Central Project Area through FY 1999-00. An estimated $4
million was anticipated to be available for affordable housing programs for the same period. A
description of the specific programs and their status are as follows.
Street Improvement Pro~ram
State Route 55 Ramp Construction Project.
Project Description The Agency adopted funding for a Project Study Report, an environmental
study, right-of-way acquisition, engineering and construction for the redesign and construction of
the ramps at the northbound SR 55 and Edinger Avenue . The ramps will provide for greater
penetration and traffic circulation in the Pacific Center Specific Plan Area and assist in the
redevelopment of the area. The total cost for the project is expected to be shared between the
Agency and the owner/developers of Pacific Center East.
Status. The AgencY has completed the Project Study Report and has submitted it to CALTRANS
for their review and approval. A cooperative agreement with CALTRANS is also under
negotiation. Approval for the actual design of this improvement is anticipated to commence the
end of FY 1997-98.
Newport Avenue North Extension Project.
Project Description The Agency proposed to implement this project to address traffic and
circulation improvements that are needed in the South/Central Project Area. The project will
extend Newport Avenue south from it's existing terminus, under the railroad tracks and intersect
with Edinger Avenue/Del Arno Avenue.
Status. A large portion of the right-of-way has already been obtained for the future roadway
through the Shea Homes Development-Agreement, and the Agency has obtained property along
Edinger Avenue through the purchase and demolition of the Case Swayne warehouse building.
Design of the underpass is-anticipated to be started in FY 1998-99 with construction to start
sometime in FY 1999-00. This project will be done after the SR 55/Edinger Avenue ramp
redesign project.
Red Hill Avenue Grade Separation Project.
Project Description This project will be a study to create a grade separation at Red Hill Avenue
an the AT & SF railroad tracks.
Status. Design of this project is scheduled to start in FY 1999-00 with construction scheduled to
commence in FY 2003-04 depending upon the availability of funding.
Housing Rehabilitation Street Improvement Program.
Project Description Through a private/Agency effort, the Agency proposed providing street and
alley improvements coordinated with housing rehabilitation programs.
Status. Starting in FY 1995-96 the Agency has assisted property owners through the funding of
the reconstruction of privately owned alleys in South Tustin. Over' $145,000 has been spent on
the reconstruction of four severely deteriorated alleys between FY 1995-96 and July 1997.
Valencia Avenue Improvement Project.
Project Description The Agency proposed to fund the preliminary engineering and environmental
assessment of the widening and associate pavement improvements on Valencia Avenue between
Del Arno Avenue and Red Hill Avenue.
Status. Design of this project is scheduled for FY 2000-01.
Red Hill Avenue Improvement Project.
Project Description This project will fund the preliminary engineering and environmental
assessment of the widening and associated pavement improvements on Red Hill Avenue fi.om
Valencia Avenue to Edinger Avenue.
5
Status Funds have been allocated in the CIP budget for preliminary design to commence in 2000-
2001.
Mitchell Avenue Improvement Project.
Project Description This rehabilitation program proposed to prepare engineering studies and
design the pavement and right-of-way improvements needed on Mitchell Avenue between
Newport Avenue and Red Hill Avenue.
Status. This project was completed in FY 1996-97.
Newport Avenue Rehabilitation Program.
Project Description This program proposed to rehabilitate Newport Avenue from Sycamore
Avenue to McFadden Avenue.
Status. Tiffs project is underway and will be completed in early 1998.
C Street Reconstruction.
Project Description The Agency has funded a program to rebuild C Street north of Mitchell
Avenue.
Status. This project was complete in October 1997.
Mitchell Avenue Widening Object.
Project Description This project is to widen Mitchell Avenue from Newport Avenue to B Street.
Status. The engineering for this project has been completed and work is scheduled for late 1997.
El Camino Widening Project.
Project Description The Agency proposed to fund the widening and pavement improvements
associated with street reconstruction of E1 Camino Real Newport Avenue to Orange Avenue. The
project will allow E1Carnino Real to become a full 4 lane arterial and improve the level of service.
Status. Design, compliance with environmental requirements, and acquisition of right-of-way will
was completed in FY 1996-97. Construction is proposed to be started in FY 2003-04.
McFadden Avenue Rehabilitation Project.
Project Description. The Agency proposed funding for the rehabilitation of McFadden Avenue
from SR 55 to Newport Avenue.
6
StatUs. This project was completed in FY 1996-97.
Economic Development Pro~ram
Developer/Property Owner Assistance Program.
Project Description This program proposes to support development and revitalization within the
South/Central Project Area. It was envisioned that the type of assistance provided would vary
depending on the needs of each individual project. The type of assistance available was to
include, but may not be limited to: land assembly for sale to private developers, land preparation,
rehabilitation costs, off-site improvements, fee payments, design and engineering assistance,
development loans, and development of parking.
Status. Specific projects completed to date have been: Agency assistance for the development of
the Micro Center Electronic Store, the acquisition and demolition of the Case Swayne warehouse
for development by a developer, and Agency assistance for the development of the Rally's site.
An additional project initiated has been the retention of a consultant to perform a planning study
of the area in the project bordered by McFadden Avenue o the north, Newport Avenue on the
east and SR 55 on the west. The firm of California Housing Partners LLC was retained to
perform marketing, and planning studies for this area. Work was initially anticipated to be
complete by July 1997. However, it has taken the contractor longer than expected to produce the
studies in a format useable to City staff. Therefore, the planning study will not be completed until
April 1998.
Business Assistance and Outreach Program.
Project Description This program is designed to support the retention of existing business and the
ongoing program of attraction of new businesses. Expenditures include but would not be limited
to such items as brochures, marketing materials, and support for Economic Development Council
activities.
StatUs. The preparation of a City of Tustin marketing brochure, a Redevelopment Agency
Newsletter, and the City marketing video have been completed. Support continues for Tustin's
Economic Development Council.
Recreational Facilities Program
Project Description. This program was designed to provide recreational facilities for elementary
and middle school age children, young adults and/or families.
StatUs. Significant improvement in the delivery of recreational facilities and educational
opportunities have been accomplished through the construction of the Tustin Family and Youth
Center. Completed in FY 1996-97, the Family and Youth Center provides Head Start programs,
7
computer training, drop-in facility for after school youth and parenting classes. The Agency
acquired the site and funded construction of the Family and Youth Center.
Traffic Control Facilities Program
General Lighting Improvement Program.
Project Description This program would provide lighting improvements in portions of the Project
Areas. This program is intended to upgrade the existing lighting and provide for added security in
the area.
Status. This project is ongoing as needed.
Alley Improvement Program.
Project Description Pavement improvements were proposed for the following alleys: south of
Walnut between Newport Avenue and Orange Avenue; south of San Juan Street between
Newport Avenue and Orange Avenue; and south 'of Bonita Avenue between Newport and Orange
Avenues.
Status. This project has been completed.
Traffic Signalization Project.
Project Description The Agency proposed installation of a traffic signal at the comer of
McFadden Street and Walnut Avenue.
Status. This project was completed in FY 1996-97.
Flood Control Facilities Program
Sycamore Avenue Storm Drain Improvement Project.
Project' DescriptiOn The Agency proposed drainage improvements to the storm drain along
Sycamore Avenue. Specific tasks include improvements, to existing storm drain pipes to alleviate
street flooding during periods of heavy rain and the abandonment of open ditches to be replaced
with storm drain pipe.
Status. Final design was completed in early 1997 and a contract for this work was awarded in
November 1997. Work should be complete in early 1998.
ADDITIONAL DESCRIPTION ON THE STATUS OF PROJECTS AND PROGRAMS
Update of Available Funds
The following table summarizes the amount of'funds that the Redevelopment Agency has received
from the tax increment available from its two project areas (including 20% set aside). The amount
of revenue was somewhat lower than anticipated when the Implementation Plan was prepared in
1994. This reduction has been a result of tax assessment appeals filed in the project areas and the
general downturn in the economy that had a negative effect on property values.
Tax Increment Received
(including Set Aside)
Project Area
FY 1993-94 FY 1994,95 FY 1995-96 FY 1996-97
Projected
Town Center
South Central
$1,953,510 $1,851,749 $1,573,439 $1,709,625
$1,721,261 $1,714,790 $1,411,793 $1,403,077
Projects Completed
Major development projects completed in the Project Areas have reduced bright, and provided for
the revitalization of the Project Areas. Attached to this report is a detailed summary (.Attachment
B) of the major development projects that have been completed in each of the project areas. The
table below summarizes the high level of activity that the Tustin Community Redevelopment
Agency has been responsible for in the Project Areas since its creation. As is evident, the
development activity in the Redevelopment Project Areas has had a significant, positive impact
upon the community.
Summary of Major Projects
Building Jobs
Valuation Created
Estimated Annual
Sales Tax/Revenue
Town Center Project Area
South Central Project Area
$37,008,629 2864 $712,900
$49,247,997 1707 $749,932
HOUSING ACTIVITIES
The Housing Section of the Implementation Plan complements the redevelopment component of
the Implementation Plan. 'The Housing Section uses the City's Comprehensive Affordable
Housing Strategy to formulate strategies by which Tustin can meet its housing responsibilities.
The following sections will detail the efforts Tustin has expended in the different programs to
meet the goals for affordable housing as set forth in the Implementation Plan.
Tax Increment Set-Aside
Redevelopment Agencies are required to set aside not less than 20 percent of the tax increment
revenue generated by their redevelopment projects into special Low and Moderate Income
Housing Funds. These funds are to be used for increasing, improving, and preserving the supply
of low and moderate income housing in their communities. In addition, this program may be
utilized for the implementation of a replacement program that would be triggered if any of the
eXisting housing stock were removed by proposed development. The goals of the Housing
Program are to increase the quantity and improve the quality of housing stock in the City of
Tustin and provide new and rehabilitated affordable housing opportunities.
Twenty percent (20%) of the tax increment generated from the project areas is designated for the
maintenance of affordable housing. Basically, the City is required over a period of time to spend
this money for the benefit of the low to moderate (LMI) income level citizen and to provide
affordable housing for this classification. The table below summarizes Tustin's annual set aside
from the tax increment received in eachProject Area for the benefit of the LMI.
20% Set Aside Received
By Project Area
Project Area
FY 1993-94
FY 1994-95
FY 1995-96
FY 1996-97
Projected
Town Center $488,674 $467,506 $402,400 $446,890
South Central $430,315 $429,747 $356,538 $357,417
Housing Rehabilitation. Program
Tustin has initiated different programs to utilize its tax increment as well as other funding sources
to assist the LM/and provide affordable housing. In the South Central Project Area, the City has
had a Housing Rehabilitation Program to maintain affordable housing. Grants and loans are given
to property owners to rehabilitate their property thereby stopping the cycle of property decline
and maintain affordable housing units. The following table summarizes expenditures in the
Housing Rehabilitation Program.
Housing Rehabilitation Program Activity
Project Area FY 1992-93 FY 1993-94 FY 1994-95 FY 1995-96 FY 1996-97
South Central $37,732 $129,362 $137,006 $354,619 $328,319
# of projects 45 59 76 98 108
10
Mortgage Credit Certificate Program
The Mortgage Credit Certificate Program (MCC) provides first time homebuyers with the ability
to claim an additional tax credit for a portion of the interest they pay on their mortgage loan.
Starting in FY 1994-95, Tustin has assisted 47 first time bomebuyers purchase their first home.
The Implementation Plan estimated that a total of 666 units would be assisted through this
program during the duration of the Plan. Due to a reduction in the funding of this program by the
State of California, Tustin has had to reduce its activity level. Tustin has expended or obligated
100% of the MCC funds it receives annually.
Development of Affordable Housing
The Implementation Plan identifies specific goals for the production of affordable housing City-
wide and identified specific components of those goals that are to be accomplished through the
use of the resources available to the Agency. The following table indicates the number of units
that were estimated in the Implementation Plan to be produced from the Agency's activities. The
table shows anticipated activity levels and actual accomplishments.
South Central
Mortgage Credit Certificate 333
First Time homebuyer
Preservation of Existing 160
Affordable Units
Owner Occupied 160
Rehabilitation
Rental Rehabilitation 106
Owner New Construction
Town Center Projected
Total, through
year 2000
333 666
75 75
160
160
106
120 0
Actual,
through 1997
47
0
currently
being
processed
Agency
40
by
346
145 (Shea
Homes)
Potential' Proiects and Programs in Remaining Year of the Implementation Plan
The Tustin Community Redevelopment Agency continues to be actively involved in the
Redevelopment Project Areas, seeking to accomplish the goals that were set forth in the
Redevelopment Plans and quantified by the Implementation Plan. The focus in the Town Center
Project Area continues to be on the economic revitalization of Old Town, creation of home
ownership in the project area, the redevelopment of existing commercial uses and solicitation to
the development community for new development projects. Improvements will continue to be
made to the infrastructure which is anticipated to provide the framework for economic growth.
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In the South Central Project Area, planning studies are underway that will inform the Agency as
to the most prudent course for redevelopment in the Project Area. It is anticipated that the
Agency will be able to bring to this area other products that are as successful as the Shea Homes
Tustin's Groves project. . Major improvements to the traffic circulation and infrastructure systems
will continue to be pursued through the SR 55 Edinger Avenue interchange and Newport Avenue
Extension projects. These two projects will form the basis for increased economic revitalization of
the Pacific Center Specific Plan Area and the entire South Central Redevelopment Project Area.
12
Attachment A
IMPLEMENTATION PLAN
(Prepared pursuant to Article 16.5 of the California Community Redevelopment Law
for fiscal years 1995-95 through 1999-2000)
for the
Redevelopment Plans
for the
Town Center and the South/Central Redevelopment Projects
Tustin Community Redevelopment Agency
Tustin, California
Adopted December 5, 1994
Resolution No. RDA-94-16
623~.~us
010495/dsw
TABLE OF CONTENTS
Section
I.
i!!.
Paoe
INTRODUCTION ................................................................................................................................. 1
BACKGROUND ................................................................................................................................... 2
A. Town Center ................................................................................................................................. 2
1. Location ................................................................................................................................. 2
2. Redevelopment Plan History ............................................................................................... 2
3. Redevelopment Plan Goals and Objectives ....................................................................... 2
4. Accomplishments ................................................................................................................. 3
5. Existing Obligations ............................................................................................................. 3
B. South/Central ............................................................................................................................... 3
1. Location ................................................................................................................................. 3
2. Redevelopment Plan History ............................................................................................... 3
3. Redevelopment Plan Goals and Objectives ....................................................................... 3
4. Accomplishments ............................................ , .................................................................... 4
5. Existing Obligations ............................................................................................................. 4
FIVE YEAR IMPLEMENTATION PLAN FOR REDEVELOPMENT ACTIVITIES ............................... 5
A. Town Center ................................. , ............................................................................................... 5
1, Focus ..................................................................................................................................... 5
2, Blight Definition .................................................................................................................... 5
3. Implementation Plan Goals and Objectives ....................................................................... 5
a. Listing/Definition ............................................................................................................ 5
b, Relationship to Blight .................................................................... ; ............................... 5
4. Five-Year Projects and Programs .............................. ; ........................................................ 6
a, Listing/Definition ............................................................................................................ 6
b, Relationship to Blight ................................................................ ; ................................... 7
5, Blight Relationship Table ................................................................' ..................................... 8
B, South/Central ............................................................................................................................... 8
1, Focus ..................................................................................................................................... 8
2, Blight Definition .................................................................................................................... 8
3, Implementation Plan Goals and Objectives ....................................................................... 8
a, Listing/Definition ............................................................................................................ 8
b, Relationship to Blight .................................................................................................... 9
4, Five-Year Projects and Programs ....................................................................................... 9
~36.tus
112994/sc
Section
IV.
Paqe
a. Listing/Definition ............................................................................................................ 9
b. Relationship to Blight .................................................................................................. 11
5. Blight Relationship Table.~ ................................................................................................. 12
FIVE YEAR IMPLEMENTATION PLAN FOR HOUSING ACTIVITIES ............................................. 13
A. Requirements ............................................................................................................................ 13
B. Set-Aside of Tax Increment ...................................................................................................... 13
1. Requirements for South/Central Redevelopment Plan ............................ i ...................... 13
2. Requirements for Town Center Redevelopment Plan ..................................................... 13
3. Net Housing Set-Aside Available: Town Center and South/Central ............................. 14
4. The Housing Program and Housing Fund Expenditures ................................................ 14
5. Proportional Expenditure for Low and Very Low Income Housing
[Section 33334.4] ................................................................................................................. 17
C. Residential Units to be Developed in Projects ....................................................................... 17
1. Total Units to be Developed .............................................................................................. 18
2; Required Production of Low-Mod Units ......................................................................... ,18
3. Past Production of Low-Mod Units Developed in Projects ............................................ 20
4. Agency-developed Units & Low-Mod Units to be Developed ........................................ 20
D. Replacement HoUsing Requirement ................. , ..................................................................... 20
Figure 1
Figure 2
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7a
Table 7b
Table 8a
Table 8b
FIGURES AND TABLES
Town Center Redevelopment Project Area
South Central Redevelopment Project Area
Summary of Major Projects: Town Center Redevelopment Project, 1976-1994
Summary of Completed Public Improvements: Town Center Redevelopment
Project, 1976-1994
Summary of Major Projects: South/Central Redevelopment Project, 1985-1994
Summary of Completed Public Improvements: South/Central Redevelopment
Project, 1985-1994
Goals and Objectives and Program Link to Elimination of Blighting Conditions:
Town Center Redevelopment Project
Goals and Objectives and Program Link to Elimination of Blighting Conditions:
South/Central Redevelopment Project
Illustrative Project Cash Flow - Housing Program (South/Central).
lllustrative Project Cash Flow- Housing Program (Town Center)
Estimate of Agency Assisted Housing Units (South/Central)
Estimate of Agency Assisted Housing Units (Town Center)
APPENDICES
· Appendix A - Location of Required Redevelopment Elements of the Implementation Plan
Appendix B - Redevelopment Low- and Moderate-Income Housing Requirements
Appendix C - Location of Required Housing Elements of the Implementation Plan
IMPLEMENTATION PLAN
for the
REDEVELOPMENT PLANS
for the
TOWN CENTER AND THE SOUTH/CENTRAL REDEVELOPMENT PROJECTS
!. INTRODUCTION
This document has been prepared pursuant to Article 16.5 of the California Community Redevelopment Law
("CRL" or "State law"), it is the first five-year Implementation Plan ("Plan") for the Redevelopment Plans
("Redevelopment Plan(s)") for the Town Center and the South/Central Redevelopment Projects ("Project(s)" or
"Project Area(s)").
This Implementation Plan is composed of two major components, a Five-Year Implementatioh Plan for
Redevelopment Activities and a Five-Year Implementation Plan for Housing Activities.
The Five-Year Implementation Plan for Redevelopment Activities:
· revisits the goals and objectives of each Redevelopment Plan;
· defines the Tustin Community Redevelopment Agency's strategy to achieve the goals and objectives of
each Redevelopment Plan;
· : presents the programs, projects and expenditures (other than those relating to low and moderate
income housing) that are proposed to attain the goals and objectives; and
· describes how the goals and objectives, programs and expenditures will eliminate blight within each of
the Project Areas.
The Five-Year Implementation Plan for Housing Activities:
· shows how the statutory requirements for the set-aside and expenditure of tax increment for housing
purposes will be met; and
· shows how residential development will be implemented in the Project Areas per the Agency's
established goals and in compliance with requirements of the CRL.
The intent of this Implementation Plan is not to restrict Agency activities to the goals and objectives, projects,
programs, and expenditures, since conditions, values, expectations, resources, and the needs of the Projects
may change from time to time. Rather, this Plan outlines the current expectations of the Agency for the next
five years.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
II. BACKGROUND
A. Town Center'
1. Location
The Town Center Redevelopment Project Area is located in central Tustin and incorporates the
historic "old town" and civic center and a majority of the commercial properties within the central portion of the
City. The Project Area is approximately 360 acres in size and is comprised of primarily commercial uses
(approximately 90 percent of the Project Area land use). The commercial uses in the Project Area are primarily
retail and service-oriented uses. Very few residential uses exist in the Project Area. The boundaries of the
Project Area are shown in Figure 1. The Town Center Project Area contains many of the city's retail and office
jobs, and is the center of goods and services which serve the greater Tustin area.
2. Redevelopment Plan History
·
The Redevelopment Plan for the Town Center Redevelopment Project was adopted by the City
Council of the City of Tustin on November 22, 1976. The Town Center Redevelopment Plan has been
amended twice. The first amendment was adopted on September 8, 1981 for the purpose of increasing the
financial limitations of the Redevelopment Plan which were determined to be inadequate. The second
amendment was adopted on March 20, 1989 to revise and update the list of public improvements to include
additional and previously unforeseen public improvements needed to further the goals and objectives of the
Redevelopment Plan. The second amendment also extended the time limit on eminent domain authority and
further increased the financial limitations.
3. Redevelopment Plan Goals and Objectives
The Redevelopment Plan for the Town Center Redevelopment Project lists the following six
"goals and objectives" to guide redevelopment decisions over the life of the Redevelopment Plan.
1)
To create a mixed use town center area that combines'commercial, office, residential, and
public uses which Will serve the needs of the community as well as encourage the healthy
growth of the town center area;
2)
3)
To improve traffic circulation and access in the town center area as a means of reducing
congestion, encouraging business development, attracting new customers to the area,
alleviating pass-through traffic congestion and conflict, and improving safety;
To revitalize and develop amenities in the Project area, both publicly and privately financed,
as a means of aiding the revitalization of the El Camino Real section in particular;,
4)
To increase the level of capital improvements such as the development of Columbus-
Tustin Park, parking facilities, sidewalk and street landscaping, street improvements and
related public improvement projects;
5) To improve controlled development of the area to aid in the harmonious and efficient
development of the redevelopment area; and
6) To encourage residential development by actively seeking private development in the
redevelopment area.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
F I GU~E !
TOWN CENTER REDEVELOPMENT PROJECT A_REA
4. Accomplishments
In the past 18 years since the Project was adopted, the Agency has provided private
development assistance planned for and completed vital public improvements and facilities as set forth in the
Redevelopment Plan. Tables 1 and 2 show the accomplishments in the Town Center Project Area.
5. Existing Obligations
The existing obligations of the Town Center Project Area include:
Bond Debt Service. In 1987 the Agency sold tax allocation bonds in the amount of
$13,100,000 in order to refund a portion of the Agency's prior bond iSsue and make funds
available for redevelopment activities within the Town Center Projec! Area. in 1991 the
Agency sold Subordinate Tax Allocation Bonds, Series 1991. The proceeds of these
Bonds were to be used by the Agency to fund additional redevelopment activities in the
Town Center Project Area.
Educational Revenue Augmentation Fund. SB 1135 (Chapter 68, Statues of 1993)
requires all redevelopment agencies to submit a percentage of tax increment received into
a County wide Education Fund. By State law, payment into this fund for schools must be
made before any other expenses are incurred, with the exception of debt service, in 1993-
94, $133,326 was transferred to this Fund and in 1994-95, $133,326 was transferred.
Set-Aside for Low and Moderate Income Housing Purposes. The CRL requires that all
agencies set aside 20 percent of their tax increment revenues to facilitate the development
of housing for persons with Iow and moderate incomes. Particulars' regarding the
estimated amount and planned usage of the set-aside funds are discussed in Part IV of this
Implementation Plan.
B. South/Central.
1. Location
The South/Central Redevelopment Project is located adjacent to the Town Center
Redevelopment Project Area on the south and is comprised of two non-contiguous areas: the "South area" and
the "Central area" as shown in Figure 2. The Project Area is approximately 398 acres in size and 'contains
residential uses, neighborhood-serving commercial uses, industrial/business park uses and vacant property.
2. Redevelopment Plan History
The Redevelopment Plan for the South/Central Redevelopment Project was adopted on August
1, 1983 in'response to the need for basic public improvements, concern for the deteriorating condition of the
residential neighborhoods, and the circulation deficiencies in the Project Area. On August 5, 1985, the City
Council amended the Redevelopment Plan to add the adjacent industrial area on the south of the AT & SF
railroad right-of-way to Valencia Avenue. This added area ("Amendment Area") was included because
development of the property could not occur until proposed public improvements for the South/Central
Redevelopment Project Area, particularly the Newport Avenue extension and a new on/off ramp at Edinger and
the State Route 55 were funded and completed.
3. Redevelopment Plan Goals and Objectives
The goals and objectives for the South/Central Redevelopment Project provided by the
Redevelopment Plan as amended include the following:
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
F i GLr~E P~'
SOUTH CENTRAL REDEVELOPMENT PROJECT AREA
O-
I
I
I
Page 1 of 3
FIGURE 2
SOUTH CENTRAL REDEVELOPMENT PROJECT AREA
Page 2 of 3
FIGURE 2
SOUTH CENTRAL REDEVELOPMENT PROJECT AREA
'K~ST
Pa~e 3 of 3
Table 1
Tustin Community Redevelopment Agency
Town Center Redevelopment Project
SUMMARY OF MAJOR PROJECTS: TOWN CENTER REDEVELOPMENT PROJECT. 1976-1994
Page I
PROJECT
PROJECT ADDRESS
UNITS SQ. ~---I'. BUILDING
(APPROX.) VALUATION
AGENCY (PUBLIC
ASSISTANCE)
RATIO OF PRIVATE
TO PUBLIC
INVESTMENT
ESTIMATED
ESTIMATED ANNUAL SALES
JOBS CREATED TAX REVENUE5
Tustin Plaza 13681-B91 Newport .439,000
Commercial 86,500 4,859,002
Office 46,500 2,965,383
Restaurant 5,000 324,175
Plaza La Fayette 13011-051 Irvine 1,816,000
Commercial 44,000 2,459,928
Restaurant 6,807 610,241
Lam, in Square
Retail Addition 494 E. First 5,000 80,000 0
Office 225 Centennial 15,000 341,700 0
Burger King 13421 Newport 3,030 130,000 0
Steven's Square
Office 210-50 Main 6,038 1,900,400 50,000
Parking Structure 445 "C" 246 Spaces 880,000 600,000
Tustin Village Center
Commercial 1081-91 Main 25,546 608,000 0
Restaurant 13612 Newport 3,994 109,400 0
Courtyard
Mervyn's 18182 Irvine 72,000 1,680,000 0
Sav-On 671 E. First 25,000 600,000 · 0
Commercial Holt/First 30,000 694,500 0
Ralph's 1096 Irvine 36,400 937,000 0
MarshaJls 630 El Camino Real 31,141 285,000 0
Home Soups 18356 Irvine Blvd. 12,200 641,000 0
Tustin Auto Wash 240 E. First St. 4,866 325,240 0
Pdme Construction 150 El Camino Real 43,056 1,300,000 0
Spirit Development 145 Main 5,035 205,000 0
O'Connor 160-190 Prospect 15,000 600,000 0
La Mancha 450 E. First 5,000 126,995 0
Klages 181-85 El Camino 3,421 172,000 0
Real
18.5/1
1 .W1
1/0
1/0
1/0
36/1
1.46/1
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
17
1/0
1/0
1/0
t/0
1/0
244
186
2O
125
20
14
6O
9
24
73
12
2O6
72
86
104
89
41
17
123
20
60
14
14
103,920
61 ,OD0'
26,000'
14,500
221,000
130,000
93,000
0
0
0
1,500
0
0
2,300
Portions of the project not yet reporting sales tax or construction is not completed.
6235.tus
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Table 1 · (Cont'd) Page2'
PROJECT
PROJECT ADDRESS
UNITS SQ. FT.
(APpROx.)
BUILDING
VALUATION
AGENCY (PUBLIC
ASSISTANCE)
RATIO OF PRIVATE
TO PUBLIC
INVESTMENT
ESTIMATED
JOBS CREATED
ESTIMATED
ANNUAL SALES
TAX REVENUES
Office
Office
Restau,'~nt remodels
China Palace
Faraday's
Don Jose's
Packer's Square
13 Tow~houses
5 Apar'~ents
Commercial
Cemic,he Office
-
Tusfin Minor Lodge
Retail Shops
Office
Retail/Office
Bumett,'Ehline
Office
Office
Lewis Properties
Commercial
Cradd:x:~k
Commercial/Office
Office
Clock Towers
Wellin¢on Plaza
Hummel BuildinB
185-95 El Camino
Real
175 "C"
13444 Newport
13102 Newport
14882 Holt
13112-32 Newport
1042 Walnut
545 S. "B"
600 El Camino Real
730 El Camino Real
750 El Camino Real
220 El Camino Real
250 El Camino Real
100 W. First Street
18231 Irvine
18302 Irvine
14/'772 Plaza
18331 Irvine
18301 Irvine
14251-71 Plaza
161 'Fashion Lane
14742 Plaza
505-15 First Street
13732 Newport Ave.
9,000
8,400
7,000
5,400
7,000
23,662
16,250
3,84O
4,000
15,540
4,00O
4,720
23,376
5,928
18,600
47,244
10,500
6,000
6,605
32,879
53,000
11,000
26,800
4,286
425,000
341,360
150,000
198,180
200,000
1,305,300
687,075
188,600
120,000
1,249,000
281,350
160,000
393,820
107,890
558,000
1,750,000
493,000
145,000
275,000
768,500
314,100
489,810
865,190
131,150
110
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
1/0
36
2O
15
2O
94
12
6O
14
94
2O
75
189
42
17
26
109
212
76
17
31,20O
14,000
16,000
0
3,780
8O
14,420
0
12,010
o
1,230
22,650
Table 2
Tustin Community Redevelopment Agency
Town Center Redevelopment Project
SUMMARY OF COMPLETED PUBLIC IMPROVEMENTS:
TOWN CENTER REDEVELOPMENT PROJECT,
1976-1994
STREET AND LANDSCAPING IMPROVEMENTS
lrvine Blvd.
Bryan Ave. and Main St. Triangle
Jamboree/I-5 Interchange
Newport Ave. at Sixth Street
Alley Reconstruction: El Camino Real;
Street widening: Newport Ave. (Bonita to Andrews)
Alley Reconstruction: South of Bonita (Between
Newport and Orange
Newport Ave. Extension
First St. from "B" St. to Newport Ave.
Newport Ave./EI Camino Real
El Camino Real (OId Town)
Street Widening: 17th St. (Yorba to Enderte Center Drive
Street Extension: Sixth St.
"C" Street Between Main Street and Third Street
STORM DRAINAGE IMPROVEMENTS
Main St. (El Camino Real to "B" St.) '
Sixth St. (El Camino Real to "B" St.)
El Camino Real (First St. to El Camino Real)
Main St. (Centennial Way to Prospect Ave.)
Irvine Blvd. (Holt Ave. to Columbus Tustin School)
Tustin Meadows Relief Storm Drain
SANITARY SEWER AND WATER SYSTEM IMPROVEMENTS
Sanitary Sewer--Second St. at "C" St.
Town Center Water Well
Water Line--E! Camino Real
Water Pressure Improvements -Newport at Sixth St.
Water Well--Beneta Way at Prospect Ave.
UTILITY UNDERGROUNDING
EI,Camino Real
Larwin Square
lrvine Blvd. at Yorba St.
First St. at Prospect Ave.
SIGNALIZATION AND PARKING IMPROVEMENTS
Signalization Improvements:
First St. at E! Camino Real
Newport Ave. at Bryan Ave.
Prospect Ave. at First St.
Main St. at "B" St.
lrvine Blvd. at Old irvine Blvd.
First St. at Centennial Way
Main St. at El Camino Real
Main St. at Pacific St.
E! Camino Real at Sixth St.
Parking Improvements:
"C' Street Parking Structure
Steven's Square
City Hall Parking Lot Lights
PUBLIC FACILITIES
Civic Center Expansion
"C" Street Plaza
Columbus Tustin Gymansium
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111794/sc
1) To redevelop and place abandoned industrial sites back into productive usel thereby
creating employment opportunities and increased values.
2)
To provide for development of land areas that cannot be developed due to the inadequacy
of public improvements related to traffic circulation and storm.drainage which can be
developed as a result of governmental assistance by the Agency.
3) To acquire funds for housing assistance to Iow income families.
4)
5)
To provide increased traffic capacity for Redhill Avenue and Edinger Street and by
providing an alternative north/south arterial.
To extend Newport 'Avenue to relieve congestion at freeway interchanges and reduce the
traffic demand on Redhill Avenue.
6) To provide better emergency services to the Project Area with the construCtion of a grade
separation for Newport Avenue and the AT and SF Railroad.
7)
To eliminate blight, due to the disuse of the land within the Project Area caused by
inadequate public improvements, and the construction of major traffic circulation
improvements, and the construction of major traffic circulation that could not reasonably be
expected to be made by private enterprise acting alone.
4. Accomplishments
In the past 11 years since the Project was adopted and subsequently amended, the Agency's
efforts have been primarily centered on planning for redevelopment and addressing the immediate needs for
basic public infrastructure. Agency accomplishments to date include street and landscaping improvements for
the Resco Development at Edinger and Red Hill Avenues and completed signalization .and parking
improvements on Edinger Avenue at Del Amo Avenue. Tables 3 and 4 shows the accomplishments in the
South/Central Project Area.
5. Existing Obligations
The existing obligations of the South/Central Project Area include:
Educational Revenue Augmentation Fund. SB 1135 (Chapter 68, Statues of 1993)
requires all redevelopment agencies to submit a percentage of tax increment received into
a County wide Education Fund. By State law, payment into this Fund for schools must be
made before any other expenses are incurred, with the exception of debt service, in 1993-
94, $117,353 was transferred to this Fund and in 1994-95, $117,353 was transferred. ·
Set-Aside for Low and Moderate Income Housing Purposes. The CRL requires that all
agencies set aside 20 percent of their tax increment revenues to facilitate the development
of housing for persons with low and moderate incomes. Particulars regarding the
estimated amount and planned usage of the set-aside funds are discussed in Part IV of this
Implementation Plan.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects.
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Table 3
Tustin Community Redevelopment Agency
South/Central Redevelopment Project
SUMMARY OF MAJOR PROJECTS: SOUTH/CENTRAL REDEVELOPMENT PROJECT. 1985-1994
RA'I:IO OF PRIVATE ESTIMATED
UNITS SQ. rT. BUILDING
PROJECT PROJECT ADDRESS (APPROX.) VALUATION
AGENCY (PUBLIC TO PUBLIC
ASSISTANCE) INVESTMENT
ESTIMATED ANNUAL SALES
JOBS CREATED TAX REVENUES
Primrose 13882 Newport 8,000 193,000
·
La Mancha 13842 Newport 9,750 275,000
Colco 13812 Newport 9,600 456,000
Tustin Royale 1262 Bryan .58,000 2,754,000
Tusfin Villa.qe 275 Sixth 14,000 232,000
Pasadena Apts. 15642 Pasadena 14,000 945,708
Lincoln Property 14901 Newport 144,000 5,699,000
6 Condos 15582-92 "B" 6,600 67,000
Sand Dollar Apts.
24 Units 15712-22 "B" 24,000 915,000
Norden 15222 Del Arno 61,190 2,710,000
Scantron 1361 Valencia 75,900 1,760,000
Resco 1421-81 Edin.qer
R&D 62,100 1,722,000
Restaurant 5,470 391,000
Pacific Bell 1252-1472 Edin.qer 224,500 10,572,000
Solmar 1302 industrial 12,000 828,000
Tustin Freeway Center
Retail 14051-61 Newport 31,947 1,309,632
Cads Jr. 14041 Newport 3,156 235,009
Music Plus Plaza Newport Main 18,200 1,21 6,500
Micro Center 1100 Edin.qer 45,600 3,000,000'
Orange Counte
Federal Credit Union 15442 Del Arno
90,000 5,400,000
0 1/0
0 1/0
0 1/0
0 1/0
0 1/0
0 1/0
0 1/0
0 1/0
0 1/0
· 0 1/0
0 1/0
250,000 8.4/1
0 1/0
0 1/0
27 2,600
33 2,600
27 2,600
0' 0
0 0
0 0
0 0
0 0
0 0
204 0
253 0
24,000
2O7
16
748
4O
0 1/0 I O6
0 1/0 11 ·
0 1/0 61
636,000 4.7/1 125
6,4OO
11,000
18,500
600,000
0 1/0 200 0
Portions of the project not yet reporting sales tax or construction is not completed.
6235.tus
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Table 4
Tustin Community Redevelopment Agency
South/Central Redevelopment Project
SUMMARY OF COMPLETED PUBLIC IMPROVEMENTS- SOUTH/CENTRAL REDEVELOPMENT:
PROJECT. 1985-1994
Resco Development (Street and Landscaping Improvements, Northwest Corner of Red Hill Avenue
and Edinger Avenue
Edinger Avenue at Del Arno Avenue (Signalization and Parking Improvements)
Newport Avenue Extension (Engineering and Land Acquisition)
Edinger Ramps to Northbound SR55 (Engineering)
6235.tus
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FIVE YEAR IMPLEMENTATION PLAN
FOR
REDEVELOPMENT ACTIVITIES
I!1. FIVE YEAR IMPLEMENTATION PLAN FOR REDEVELOPMENT ACTIVITIES
A. Town center
1. Focus
The Agency's focus during the next 5 years with respect to the Town Center Redevelopment
Project is to concentrate on business development program which includes land assembly for resale to private
developers, site improvements, loans and grants for new development as well as for rehabilitation, and
programmatic efforts aimed at business attraction and retention. The Agency also wishes to implemen't
remaining public improvement projects as financial resources become available.
2. Blight Definition
The Community Redevelopment Law provides the legal definition of blight. The definition of
blight as contained in the CRL at the time the Redevelopment Plan for the Town Center Redevelopment Project
was adopted spoke to the health and safety conditions of buildings and the factors that characterized economic
dislocation, deterioration, or disuse. Briefly, a blighted area is one that contains specific conditions and factors
resulting in the lack of proper utilization of the area that constituted a serious burden on the community and that
could not be expected to be alleviated by private enterprise acting alone. The specific blighting conditions and
factors are discussed below.
3. Implementation Plan Goals and Objectives
a. Listing/Definition
For the Town Center Redevelopment Project Area, the Goals and Objectives ("Goals and
Objectives") of the Implementation Plan are to:
· Provide business assistance for rehabilitation, expansion, and retention to existing and
new businesses in the Town Center Redevelopment Project Area.
Rehabilitate substandard and deteriorating structures to improve building conditions,
increase functionality and desirability, and to integrate design characteristics with the
aim of creating a cohesive commercial district.
Upgrade substandard public infrastructure systems and public facilities, and provide for
the installation and construction of new public improvements to meet the needs of the
Project Area..
· Provide direct assistance for the development of new commercial uses.
b. Relationship to Blight
The above Goals and Objectives represent the Agency's near term direction to continue
the elimination of by providing assistance to strengthen .the business environment of the Town Center Project
Area. Specifically, these Goals and Objectives will help to revitalize the building stock by improving deteriorated
building conditions and correcting deficiencies among aged buildings. Goals and 'Objectives to upgrade and
install public improvements and facilities, and to provide assistance to existing businesses, new businesses,
and new development will help to foster new economic growth and correct conditions of depreciated values,
impaired investments and economic maladjustment, while facilitating the construction of necessary public
infrastructure
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
4. Five-Year Projects and Programs
The CRL requires a five-year implementation plan regardless of economic conditions during the
five-year period. It should, therefore be understood that the funding of the following projects are greatly
influenced by economic conditions and the ability of the private sector to respond to Agency initiatives. Projects
and expenditures rely on the private sector's ability to obtain funding as well as the Agency's ability to maintain
and increase tax increment revenues. If the Agency's revenues are depleted because of new requirements
imposed by the State, it is unlikely that all the projects listed below will be implemented.
a. Listing/Definition
The projects, programs and expenditures listed below are based on the availability of
funding from existing fund balances, bond proceeds, and estimated future tax increment revenues not
previously committed to existing financial obligations. The following proposed projects, programs and the
corresponding expenditures over the five-year period will satisfy the Goals and Objectives of this
Implementation Plan and the elimination of blighting conditions. They are listed in pdodty order as recently
determined by the Agency. Financial resources are expected to be insufficient to complete implementation
within the five-year time period.
Economic Development Proqram ($4.375.750)
Developer/Property Owner Assistance Program. This program supports
revitalization of the City's historic Old Town and adjacent areas within the Town Center '
Project Area. The type of assistance will vary depending on the needs of individual
projects. The type of assistance may include, but will not be limited to land assembly
for resale to private developers, land preparation, off-site improvements, fee payments,
design and engineering assistance, development loans (for those costs allowed by
law), and development of parking.
Owner Assistance/Commercial Rehabilitation Program. This program consists of
financial assistance in the form of loans and/or grants for seismic retrofitting, historic
preservation, building and safety code compliance, building renovation and facade
improvements.
Business Assistance and Outreach Program. This program is designed to support
the retention of existing business and attraction of new businesses. Expenditures
would include but may not be limited to the following such items: brochures, marketing
materials, and support for Economic Development Council activities.
Community Service Facilities Proqram ($1,045,000)
Columbus - Tustin Park Project. The Agency proposes to provide additional
improvements necessary for the completion of the Columbus-Tustin Park renovation.
Peppertree Park Renovation Project. The Agency proposes to provide funding for
the improvement of the existing facilities of the Peppertree Park and the construction of
new restroom facilities.
· Community Services Facilities Program. The Agency proposes-to conduct an
improvement program for the City's Senior Center.
Traffic. Utilities and Flood Control Facilities Proqram ($329,200)
· Traffic Signalization Project. The Agency plans to install traffic signals at the corner
of 1st Street and B Street.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Holt Avenue/State Route 55 Storm Drain Project. The Agency plans to fund
improvements to the storm drains between Holt Avenue and State Route 55.
Traffic Control Facilities Program. in addition to the traffic control, project listed
above, the Agency proposes to conduct a General Lighting Improvement Program that
will improve existing street lighting, a traffic signalization project, a left turn phasing
project and a traffic sign project within the Town Center Project Area.
· Street Improvement Program. The Agency has additional street improvement
projects that it proposes to undertake in the Town Center Project Area. They include,
general street widening program, Main Street banner pole project, Irvine Blvd..
restriping project, Irvine Blvd. intersection improvement project, Newport Ave.
rehabilitation program from San Juan Street to El Camino Real, Main Street
rehabilitation program, and Prospect Avenue rehabilitation.
, .
· Utilities Improvement Program. The Agency proposes to complete the
undergrounding of utilities located in the City's historic area.
b. Relationship to Blight ..
The following is a list of the major blighting characteristics found in the Town .Center
Redevelopment Project Area and how proposed Agency activities will reduce the prevalence of these blighting
characteristics.
Deterioration, Age and Obsolescence. Although both Agency assisted and private
sector redevelopment activities have made major contributions to an improvement in
the building stock of the Project Area, several buildings and shopping centers
characterized by age, obsolescence and deterioration remain. This portion of the
building stock does not appear to meet the changing needs of the commercial/retail
sector and are no 'longer economically competitive in today's markets. The Economic
Development Program is being undertaken to correct these conditions and eliminate
this blighting influence.
The Existence of Inadequate Public Improvements and Utilities Which Cannot be'
Remedied by Private or Governmental Action Without Redevelopment. Although
the Agency has undertaken an extensive public improvement program within the
Project Area which has corrected several deficiencies, targeted areas in need of public
improvement upgrades or new construction remain. Both public parks serving the
surrounding community are in need of upgrades and renovation, and traffic control and
circulation measures are needed to alleviate peak hour congestion. The Agency
wishes to maintain its level of commitment to improving the public infrastructure serving
the area .by continuing the Community Service Facilities Program and the Traffic
Utilities and Flood Control Facilities Program.
A Prevalence of Depreciated Values, Impaired Investments, and Economic
Maladjustment. The Town Center Project Area exhibits problems such as lack of
parking, deteriorating conditions, outdated building conditions, declining property
values, and a lack of investment. These conditions have slowly improved because of
past redevelopment activity, but still remain. All three of the Programs proposed under
this Implementation Plan will address these blighting conditions.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000) ·
5. Blight Relationship Table
Achievement of-the Implementation Plan Goals and Objectives, and implementation of the
projects, programs, and expenditures outlined in this Plan will assist in eliminating blight within the Town Center
Project Area. Table 5 illustrates the relationship between the Goals and Objectives of the Implementation Plan,
projects, programs and expenditures of the Implementation Plan, and the blight which will be eliminated.
Private sector activities will additionally contribute to the removal of blight within the Project Area and the
revitalization of the Town Center Project Area.
B. South/Central
1. Focus
With the exception of housing activities, the Agency intends to concentrate its redevelopment
effort to allow for full funding to implement the Pacific Center East Specific Plan in the Amendment Area and to
alleviate traffic congestion throughout the Project Area. The redevelopment of the Amendment Area is guided
by the Pacific Center East Specific Plan adopted by the Tustin City Council in December 1990 and amended in
May of 1994. The Specific Plan is the primary device for implementing the land use provisions of the
Redevelopment Plan for the South/Central Redevelopment Project.
While concentrating efforts within the Pacific Center East Specific Plan area, the Agency also
wishes to continue its public improvement program in the remainder of the Project Area by implementing traffic
control projects to correct deficiencies in vehicular circulation.
2. Blight Definition
The Community Redevelopment Law Provides the legal definition of blight. The definition of
blight as contained in the CRL at the time the Redevelopment Plan for the South/Central Redevelopment
Project was adopted addressed the health and safety conditions of buildings and the factors that characterized
economic dislocation, deterioration, or disuse. Briefly, a blighted area is one that contains specific conditions
and factors resulting in the lack of proper utilization of the area that constituted a serious burden on the
community and that could not be expected to be alleviated by 'private enterprise acting alone. The specific
blighting conditions and factors are discussed below.
3. Implementation Plan Goals and Objectives
a. Listing/Definition
For the South/central Redevelopment Project Area, the Goals and Objectives ("Goals and
Objectives") of the Implementation Plan are to:
· Facilitate development to create local job opportunities and to preserve the City's
employment base.
· Provide assistance to the private sector through the construction of circulation
improvements designed to facilitate access to underutilized sites.
Upgrade substandard public infrastructure systems and public facilities, and provide fo~
the installation and construction of new public improvements to meet the requirements
of existing and new development in the Project Area.
· Provide direct assistance for the development of new commercial uses.
· Provide for an integrated business park enviro, nment which capitalizes on market
opportunities and which is compatible with adjacent developed land uses.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Table 5
Tustin Community Redevelopment Agency
Town Center Redevelopment Project
Five-Year implementation'Plan: 1995-96 through 1999-2000
GOALS AND OBJECTIVES AND PROGRAM LINK TO ELIMINATION OF BLIGHTING CONDITIONS:
TOWN CENTER REDEVELOPMENT PROJECT
Goals and. Objectives
Deterioration
Inadequate
Public
Age and Improvements
Obsolescence and Utilities
Depreciated
Values,.
Impaired
Investments,
and Economic
Maladjustment
Provide business assistance for
rehabilitation, expansion, and retention
to existing and new businesses in the
Town Center Redevelopment Project
Area.
Rehabilitate substandard and
deteriorative structures to improve
building conditions, increase
functionality and desirability, and to
integrate design characteristics with the
aim of creating a cohesive commercial
district.
Upgrade substandard public
infrastructure systems and public
facilities, a~d provide for the intallation
and construction of new public
improvements to meet the needs of the
Project Area.
Provide direct assistance for the
development of new commercial uses.
Program
Economic Development Program v"
Community Service Facilities Program
Traffic, Utilities and Flood Control
Facilities Program
,
3235.tus
111794/sc
b. Relationship to Blight.
The above Goals and Objectives represent the Agency's near term direction to continue
the elimination of blight by providing support to the industrial sector of the South/Central Project Area, thus
expanding the industrial base of the City and increasing employment opportunities. Specifically, these Goal§
and Objectives will help to facilitate private sector development by assisting in the construction of public
improvements. Goals and Objectives to provide assistance to existing businesses, new businesses, and new
development will help to foster new economic growth and correct conditions of depreciated values, impaired
investments and economic maladjustment by returning the land to proper utilization.
4. Five-Year Projects and Programs
The CRL requires a five-year implementation plan regardless of economic conditions during the
five-year period. It should, therefore be understood that the funding of the following projects are greatly
influenced by economic conditions and the ability of the private sector to respond to Agency initiatives. Projects
and expenditures rely on the private sector's ability to obtain funding as well as the Agency's ability to maintain
and increase tax increment' revenues. If the Agency's revenues are depleted because of new requirements
imposed by the State, it is unlikely that all the projects listed below will be implemented.
a. Listing/Definition
The projects, programs and expenditures listed below are based on the availability of
funding from existing fund balances, bond proceeds, and estimated future tax increment revenues not
previously committed to existing financial obligations. The following proposed projects, programs and the
· corresponding expenditures over the five-year period will satisfy the Goals and Objectives of this
Implementation Plan and the elimination of blighting conditions. They are listed in priority order as recently
determined by the Agency. Financial resources are expected to be insufficient to complete implementation
within the five-year time period.
Street Improvement Pr°oram ($17,341,223)
State Route 55 Ramp Construction Project. The Agency and the property
owners/developer of the Pacific Center East propose to provide funding for the project
study report, the environmental study, plans, engineering and construction for the new
ramp from State Route 55 at Newport Avenue. in addition, the Agency proposes to
provide funding for the project study report, the environmental study, plans, right of way
acquisition, engineering and construction for the closure of the State Route 55 Ramp at
Edinger Street. The total cost of the project will be split between the Agency and the
owner/developers of the Pacific Center East.
State Route 55/Del Arno Avenue Improvement Project. This program is to be
completed in coordination with the construction of the new on/off ramp at Newport
Avenue. The expenses of this project are to be shared between, the Agency and
property owners/developers of the Pacific Center East.
Newport Avenue North Extension Project. The Agency .proposes to implement this
project in an attempt to address the major traffic and circulation improvements that are
needed in the South/Central Project Area. The project is expected to extend Newport
Avenue from its existing terminus south to Edinger Avenue and includes a necessary
grade separation over the railroad tracks and flood control wash. This project will be
undertaken in coordination with the developers/and property owners of the Pacific
Center East area.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Newport Avenue South Extension Project. The City's transportation' network
serving both the Southern~ portion of the City as well as the commercial core in Old
Town are currently impacted by traffic congestion. To address this situation the
Agency proposes a second phase of Newport Avenue extension for the extension.of
Newport Avenue south to Valencia Avenue. Costs for this project would'be shared
between the Agency and the private land owners in the Pacific Center East area.
Red Hill Avenue Grade Separation Project. This project will create a grade
separation at Red Hill Avenue and the AT & SF railroad tracks.
Housing Rehabilitation Street lmprov, ement Program. Through a private/Agency
effort, the Agency proposes to provide street improvements coordinated with the
housing rehabilitation programs. The Agency proposes to assist in this program
through, among other 'things, funding for off-site improvements including alley
pavement and public right of way improvements.
Valencia Avenue Improvement Project. The Agency proposes to fund the
preliminary engineering and environmental assessment of the widening and associated
pavement improvements on Valencia Avenue from Newport Avenue to Red Hill
Avenue.
Red Hill Avenue Improvement Project. This project will fund the preliminary
engineering and environmental assessment of the widening and pavement
improvements on Red Hill Avenue from Valencia Avenue to Edinger Avenue.
Mitchell Avenue Improvement Project. This rehabilitation program proposes to
prepare engineering studies and to design the pavement and right of way
improvements needed on Mitchell Avenue between Newport Avenue and Nisson Road.
Newport Avenue Rehabilitation Program. This rehabilitation program proposes to
fund the preliminary engineering and construction of road improvements needed on
Newport Avenue from Sycamore Avenue to McFadden Avenue.
C Street Reconstruction Project. The Agency proposes to fund the reconstruction of
C Street north of Mitchell Avenue.
Mitchell Avenue Widening Project. This project proposes to fund the preliminary
engineering and design of the widening and associated pavement improvements on
Mitchell Avenue from B street to Newport Avenue.
San Juan Street Widening Project. The Agency proposes to fund the widening and
pavement improvements associated with street reconstruction on San Juan Street from
Newport Avenue to Orange Avenue.
· McFadden Avenue Rehabilitation Project. The Agency proposes to fund the
rehabilitation of McFadden Avenue from State Route 55 to Newport Avenue.
Economic Development Program ($1,101,000)
Developer/Property Owner Assistance Program. This program proposes to support
development and revitalization within the South/Central Project Area. The type of
assistance would vary depending on the needs of each individual project. The type of
assistance would include, but may not be limited to: land assembly for sale to private
developers, land preparation, rehabilitation costs, off-site improvements, fee' payments,
design and engineering assistance, development loans, and development of parking.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
10
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
.o
Business Assistance and Outreach Program. This program is designed to support
the retention of existing business and attraction of new businesses. Expenditures
include but would not be limited to such items as brochures, marketing materials, and
support for Economic Development Council activities.
Recreational Facilities Proqram ($2,000,000)
· This program would provide recreational facilities for elementary and middle school age
children, young adults and/or families.
Traffic Control Facilities Program ($213,400)
General Lighting Improvement Program. This program would provide lighting
improvements in portions of the Project Area. This program is intended to upgrade the
existing lighting and provide for added security in the area.
Alley Improvement Program. Pavement improvements are proposed for the
following alleys: south of Walnut between Newport Avenue and Orange Avenue; south
of San Juan Street between Newport Avenue and Orange Avenue; and south of Bonita
Avenue between Newport and Orange Avenues.
· Traffic Signalization Project. The Agency plans to install traffic signals at the corner
of McFadden Street and Walnut Avenue.
Flood Control Facilities Proqram ($56,200)
be
· Sycamore Avenue Storm Drain Improvement Project.
the storm drain along Sycamore Avenue.
Relationship to Blight
Drainage improvements to
The following is a list of the major blighting characteristics found in the South/Central
Project Area and how proposed Agency activities will reduce the prevalence of these blighting characteristics.
The Existence of Inadequate Public Improvements and Utilities Which Cannot be
Remedied by Private or Governmental Action Without Redevelopment. Access
between the northern portion and the southern portion (essentially the 1985
Amendment Area) of the South area of the South/Central Project Area is restricted
because of the lack of through streets. Redhill Avenue acts as the only north-south
access route but does not provide direct access into Tustin's central area. In addition,
further development within the Pacific Center East Specific Plan Area is restricted
because of a lack of necessary public improvements, particularly circulation
improvements needed to provide access to various sites. The Agency intends to
facilitate development within this area and to eliminate the lack of proper utilization and
prevalence of vacant sites within this area through the Street Improvement Program,
Traffic Control Facilities Program and Flood Control Facilities Program.
A Prevalence of Depreciated Values, Impaired Investments, and Economic
Maladjustment. The underutilization of the land within the Amendment Area will
continue unless action is taken to facilitate private development. The Amendment Area
suffers from a lack of proper utilization because of an inadequate infrastructure system.
Extraordinarily high costs are required to correct deficiencies, notably circulation
deficiencies. Without these improvements, the land becomes underutilized and a
burden on the community. The Agency is proposing to contribute to the construction of
off-site circulation system improvements (particularly the extension of Newport Avenue
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
11
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
to provide access to the area), freeway ramp improvements, and street improvements
through the Programs cited above. The Agency is also proposing the Economic
Development Program to foster economic vitality.
5. Blight Relationship Table
Achievement of the Implementation Plan Goals and Objectives, and implementation of the
projects, programs, and expenditures outlined in this Plan will assist in eliminating blight within the
South/Central Project Area. Table 6 illustrates the relationship between the Goals and Objectives of the
Implementation Plan, projects, programs and expenditures of the Implementation Plan, and the blight which will
be eliminated. Private sector activities will additionally contribute to the removal of blight within the Project Area
and the revitalization of both the South/Central Project Area.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
12
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Table 6
Tustin Community Redevelopment Agency
South / Central Redevelopment Project
Five-Year Implementation Plan:. 1995-96 through 1999-2000
GOALS AND OBJECTIVES AND PROGRAM LINK TO ELIMINATION OF BLIGHTING CONDITIONS:
SOUTH/CENTRAL REDEVELOPMENT PROJECT
Goals and Objectives
Inadequate Public
Improvements and
Utilities
Depreciated
Values, Impaired
Investments and
Economic
Maladjustment
Facilitate development to create job opportunities and to preserve
the City's employment base.
,
Provide assistance to the private sector through the construction of v/ ~,'
circulation improvements designed to facilitate access to
underutilized sites.
Upgrade substandard public infrastructure systems and public ~ v/'
facilities, and provide for the installation and construction of new
public improvements to meet the requirements of existing and new
development in the Project Area.
ProVide direct assistance for the development of new commercial
uses.
Provide for an integrated business park environment which
capitalizes on market opportunities and which is compatible with
adjacent land uses.
Program
Street Improvement Program
Economic Development Program
Traffic Control Facilities Program
Flood Control Facilities Program
6235.tus
111794/sc
FIVE YEAR IMPLEMENTATION PLAN
FOR
HOUSING ACTIVITIES
IV. FIVE YEAR IMPLEMENTATION PLAN FOR HOUSING ACTIVITIES
A. Requirements
This housing component of the Implementation Plan for the Town Center and South/Central
Redevelopment ProjeCts is the complement of the redevelopment component. The Implementation Plan sets
forth the Tustin Redevelopment Agency's goals and objectives, projects and expenditures for the Projects over
the five-year period commencing in July, 1995.
Much of the information presented in this housing component of the Plan, including the components
of the Agency's Housing Program, are based, on the contents of the CITY OF TUSTIN COMPREHENSIVE
AFFORDABLE HOUSING STRATEGY (the "Strategy") which was adopted by the City of Tustin and the Agency
in November of 1993. The Comprehensive Affordable Housing Strategy remains the primary policy document
to be used by the City and the Agency to meet its housing responsibilities.
This housing component of the Implementation Plan presents the Agency's intended program to
deal with the expenditure of funds and other activities relating to the production of housing affordable to persons
and families of Iow and moderate ("low-mod") income. Low-mod income includes the following income levels:
· moderate income, which is defined as household income of 80% to 120% of median income for
the applicable household size;
· Iow income, which is defined as income of 50% to 80% of median income for the applicable
household size; and
· very iow income, which is defined as income less than 50% of median income of the applicable
household size.
B. Set-Aside of Tax Increment
1. Requirements for South/Central Redevelopment Plan
Because the Redevelopment Plan for the South/Central Redevelopment was adopted after
January 1, 1977, the provisions of Section 33334.2 regarding the set-aside of twenty, percent (20%) of Project
tax increment for Iow-mod .housing purposes apply. The set-aside is required to be deposited into a Housing
Fund created to hold the moneys until expended. The Section enables the elimination or reduction of an annual
housing deposit if the Agency makes findings regarding the lack of need for Iow-mod housing in Tustin or the
sufficiency of less than twenty percent of the Project Area's tax increment to meet the need that does exist. Any
such reduction would render money not deposited into the Housing Fund available for other redevelopment
purposes. Also, pursuant to other provisions of the CRL, the required deposits may be made by diverting
money from one to another of the Agency's redevelopment Project Areas.
2. Requirements for Town Center Redevelopment Plan
The adoption of the Redevelopment Plan for the Town Center Redevelopment Project predates
the original requirement that agencies set aside 20% of tax increment for iow-mod housing but the Project is
subject to Section 33334.6, which applied the set-aside requirement to pre-1977 projects. The requirement for
the Town Center Project provides the same options for reducing or eliminating the set-aside in a given year as
are diScussed above and adds one more. If a project has obligations that were incurred prior to the set-aside
requirement the agency can defer the annual set-aside as necessary to meet its earlier obligations. The
obligations were to be identified on a Statement adopted by resolution of the Agency prior to September 1,
1986.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
13
Implementation Plan
(fiscal years 1995-96 through '1999-2000)
The Agency adopted such a statement for obligations of the Town Center ProjeCt and in
subsequent years deferred the deposit of approximately 2.8 million dollars into the Housing Fund. Under the
provisions of the CRL, an agency that defers any portion of a deposit or deposits into the Housing Fund must
adopt a plan for the elimination of the deficit caused by the deferral. The Agency has adopted such a plan and
· will begin to make deposits into the Housing Fund for the Town Center Project during the 1996-97 fiscal year.
These deposits are included in the cash flow of the Housing Fund presented later.
Except for the deferral of deposits for the Town Center Project, the Agency has not availed
itself of any of the options for eliminating, reducing or using another project's resources to meet the Iow-mod
housing set-aside requirement and does not currently anticipate that it will exercise any of these options over
the term of this Implementation Plan. The projections of deposits into the Housing Fund that are included in
following sections assume that the 20% set-aside will be deposited into the' Housing Fund in each of the years
covered by this Plan.
3. Net Housing Set-Aside Available: Town Center and South/Central
Shown on the attached Tables 7a and 7b are the estimated beginning balances in the
Housing Fund and the projected deposits into the Housing Fund for the South/Central and Town Center
Projects, respectively. The projected deposits into the fund are based on the revenue, estimates included as
part of the Strategy. Using these estimates and actual starting balances, as of June 30, 1994, for the Housing
Funds, the following amounts of available funds for the Agency's Housing Program were determined, all as
shown on Tables 7a and 7b. No other resources are assumed to be used in any significant amount to
accomplish the goals and objectives of this Plan.
Summary of Funds Available Over the Plan Term
South/Central Town Center
Beginning Balance as of 6/30/94 $1,661,000
$1,042,000
Estimated Deposits
2,172,000 .4,402,000
Estimated Investment Earnings
144,000 151,000
Total Available
$3,977,000 $5,595,000
The Housing Set-Aside revenue shown on Tables 7a and 7b was estimated based on 20
percent of estimated tax increment revenue for the Project Area. The amounts shown on the Tables are
estimates, actual tax increment revenues and resulting Housing Set-Aside revenues could be more or less than
the amounts shown on the Tables. Deposits into the Town Center Housing Fund include payments made from
"non-housing" tax increment pursuant the Agency's adopted deficit elimination plan as .discussed above.
4. The Housing Program and Housing Fund Expenditures
A description of the projects and programs comprising.the Agency's housing activities and
the time frame for each is discussed below.
· First-Time Homebuyers Program. This program is comprised of three major
components:
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
14
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Table 7a
Tustin Community Redevelopment Agency
South Central Redevelopment Project Area
ILLUSTRATIVE PROJECT CASH FLOW- HOUSING PROGRAM
(O00's Omitted)
Resources
I
1994-95
Beginning Balance $3,216
Housing Set Aside 406
Investment Earnings 96
Total Resources $3,718
Existing Obligations
Renaissance Affordability and
Downpayment Assistance 463
Renaissance Right of Way
Acquisition 591
Total Existing Obligations
Cumulative Net Deposits (not including
the Beginning Balance) (1)
Expenditures
First-Time Homebuyers. Program
Preservation of Existing' Affordable Units
Rehabilitation of Existing Housing Stock
Administration Expenses (2)
Total Expenditures
ESTIMATED EXCESS SURPLUS
Balance Available (4)
Total of prior four fiscal year's Housing
Set Aside Deposits / Or $1.0 Million (5)
Plan Period
1995-96 1 ~o96-97 1997-98 1 ~°98-99 1999-00
$1,661 $1,019 S990 $838 $283
415 425 434 444 454
50 31 30 25 8
$2,125 $1,475 S1,454 $1,307 $746
0 0 0 0 0
0 0 0 0 0
1,054 0 0 0 0 0
S502 $967 $1,422 $1,886 $2,355 $2,818
0 35 0 35 0 35
0 5O0 0 0 0 0
903 466 375 466 903 466
100 105 110 115 121 127
$1,003 $1,106 $485 - S616 $1,024 $628
1,661 1,019 990 638 283 118
1,754 1,756 1,722 1,679 1,718 1,757
Excess Su~lus $0 $0 $0 SO $0 $0
(1) Equals cumulative deposits of Housing Set Aside Monies, including interest.
(2) As shown on the CITY OF TUSTIN COMPREHENSIVE AFFORDABLE HOUSING STRATEGY for the South Central Redevelopment Project Ares.
(3) As estimated by Katz Hollis.
(4) Reflects total resources less total obligati3~ and total expenditures.
(5) Amount shown is the greater of the prior fmjr year's housing deposits or $1.0 million, whichever is greater. Please note that this calculation
is based on the balance available as of fiscal year ending June 30, 1995, therefore prior year deposits are 1991-92 through 1994-95.
HOUS_CF. XLS
11/29/94_kh
Table 7b
Tustin Community Redevelopment Agency
Town Center Redevelopment Project Area
ILLUSTRATIVE PROJECT CASH FLOW - HOUSING PROGRAM
(ooo's Omitted)
Resources
I
199,~-95
Beginning Balance $1,036
Housing Set Aside 457
Investment Earnings 31
Deficit Reduction Payment
Total Resources $1,524
Existing Obligations
Preservation of Tustin Gardens
Total Existing Obligations
Cumulative Net Deposits (not including
the Beginning Balance) (1)
Expenditures
First-Time Homebuyers Program
New Housing Construction
Rehabilitation of Existing Housing Sto¢
Support and Ancillary Services
Administration Expenses (2)
Total Expenditures
ESTIMATED EXCESS SURPLUS f3)
Balance Available (4)
Total of prior four fiscal year's Housing
Set Aside Deposits / Or $1.0 Million (5)
Plan Period
I
1995-96 1996-97 1 ~)97-98 1998-99 1999--00
$1,042 $1,233 $437 S870 $1,470
460 469 480 491 502
31 37 13 26' 44
500 500 500 500
$1,533 $2,239 $1,430 $1,887 $2,516
275 0 0 0 0 0
275 0 0 0 0 0
$488 $979 $1,485 $1,978 $2,495 $3,041
100 35 200 135 300 335
0 155 0 310 0 279
0 0 1,490 0 0 1,782
60 60 60 60 60 60
47 50 52 55 57 60
$207 $300 $1,802 $560 $417 $2,516
$1,042 $1,233 $437 $870 $1,470 SO
1,375 1,835 1,843 1,866 1,900 1,942
Excess Surplus $0 $0 $0 S0 SO $0
(1) Equals cumulative deposes of Housing Set Aside Monies, including interest.
(2) As shown in the CITY OF TUSTIN COMPREHENSIVE AFFORDABLE HOUSING STRATEGY for the Town Center Redevelopment Project Area.
(3) As estimated by Katz Hollis.
(4) Reflects total resources less total obligations and total expenditures.
(5) Amount shown is the greater of the prior four year"s housing deposits or $1.0 million, whichever is greater. Please note that this calculation
is based on the balance available as of fiscal year ending June 30, 1995, therefore prior year deposits are 1991-92 through 1994-95.
HOUS_CF. XLS
11/29/94_kh
Mortgage Credit Certificate (MCC) Program. Both Projects will provide support
for the MCC Program, which is administered by the County of Orange and provides
federal income tax credits as a form of assistance to homebuyers. The Projects
will be responsible for the provision of reserve accounts that assure the program
will be utilized and for an allocation of the administrative costs of the program.
First-Time Homebuyer Downpayment Assistance Program. In the Town
Center Project, the Downpayment Assistance Program effort consists of providing
a portion of the downpayment necessary to qualify for a home purchase and will
also refer potential homebuyers to banks and other lenders that offer below market
downpayment requirements to qualified buyers.
First-Time Homebuyer Second Mortgage Program. The Town Center Project
will be involved in the Second Mortgage Program, which consists of the provision
of deferred or minimal payment second mortgages that reduce the overall
mortgage cost of a home to levels supportable by Iow-mod buyers.
Preservation of Existing Affordable Units. Each Project Area is the.site of a
federally,assisted housing development that is near to, or has reached, the termination .
of its affordability restrictions. Preservation of these units as affordable housing for
Iow-mod households is the intent of this component of the Housing Program.
Preservation for the Tustin Gardens Apartments. Expenditures to accomplish
preservation of the affordability of the Tustin Gardens Apartments in the Town
Center Project are on-going and expected to be completed before the term of this
Implementation Plan commences.
Preservation of Orange Gardens Apartments. Preservation of the affordability
of the Orange Gardens Apartments using funds from the South/Central Housing
Fund has been delayed and will be part of the activities undertaken during the term
of this Plan.
Rehabilitation of Existing Housing Stock. The rehabilitation component of the
Agency's Housing Program seeks to increase homeownership opportunities, balance
the income mix by increasing the number of moderate income households, and
improve 'the hosing stock while preserving affordability for existing low income
residents.
Owner-Occupied Rehabilitation Loans & Grants. The Agency proposes to
provide rehabilitation loans and grants for owner-occupied single-family properties
within the South Central Project for households at or below 120% of median
income, adjusted for household size.
2-4 Unit. Rehabilitation and Resale. The South Central Project Area contains a
number of smaller apartment projects containing two to four units each. This
rehabilitation effort consists of acquisition of multi-family properties' and their
conversion to ownership housing.
Rental Rehabilitation Loans and Grants. This program gives loans and grants to
owners of rental properties in the South Central Project whose occupants qualify as
persons of iow-mod income as incentives to improve their properties and will be
Tustin Community RedeVelopment Agency
Implementation Plan
Town Center and South/Central Redevelopment Projects
15
(fisca '! years 1995-96 through 1999-2000)
accompanied by City code enforcement activities to ensure that substandard units
are brought into compliance with City codes.
2-4 Unit Rehabilitation and Rental. The Agency proposes the use of this
program for the acquisition and substantial-rehab of existing rental units then
reselling the units under restrictions as to their occupancy as Iow-mod units within
the South Central Project.
Rental New Construction or Substantial Rehabilitation. The Agency proposes
the use of this program in the Town Center Project for loans and grants to the
owners of rental properties whose occupants qualify as persons of Iow-mod
income. The funds will be used for new construction or substantial rehab of
existing rental, units.
New Housing Construction. The Agency intends to use the assistance techniques
diScussed under the First-Time Homebuyers Program as an incentive to deyelopers to
build units for a readily available market of homebuyers in this New Housing
Construction Program.
Owner New Construction Townhome$. The assistance, to be provided from the
Town Center Housing Fund, would be in return for covenants that restrict the sale
of the units to qualified iow-mod persons for at least the minimum amount of time
required by law. Similar type assistance would be provided to the developers of
rental housing. Deferred or minimum payment second mortgages that reduce the
cost of developing the housing would be made available in exchange for covenants
to maintain the affordability of the new units within the Iow-mod category. The
Agency can also assist the development of new owner and rental housing through
its typical activities of site assemblage and resale to developers.
Support and Ancillary Services. The Support and Ancillary Services will provide
assistance to those who might otherwise become homeless. This component of the
Housing Program will be undertaken with funding from the Town Center Housing Fund
and includes the following:
Emergency Rome Mortgage Assistance. This program is generally in the form
of low interest loans or restructuring of existing mortgage paYments, for
homeowners whose homes are in danger of foreclosure because of financial
circumstances outside of their control.
Emergency Rental Assistance. Comparable programs for renters provide
financial assistance to tenants at risk of eviction for similar reasons.
Administrative Expenditures: in the course of implementing the housing program,
administrative costs will be incurred. Such e:~penditures include salaries, overhead,
consultant and legal expenses, supplies, etc. Actual administrative expenditures must
be determined each year and found to be necessary to implement the housing
program. For the 1994-95 fiscal year, the Agency anticipates the expen~liture of
approximately $50,000 of Housing Fund moneys in the Town Center Project on
administrative costs. The corresponding number for the South/Central Project is
$105,000. The Housing Program cash flow includes estimates of future years'
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
16
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
administrative expenditures based on the 1994-95 amount adjusted for inflation of
approximately five percent per year.
Tables 8a and 8b provide an illustrative example of how the housing program could be
financed on an annual basis over the fiVe-year period. The cash flow provided on the table is meant to provide
an indication of the financing of the Housing Program and of the estimated expenditures to be made from the
Housing Fund during each of the five years of the Implementation Plan. The timing and specific amounts of the
expenditures may be adjusted over time. Specific decisions on each of these items will be made as part of the
Agency's annual budget process.
Given the successful implementation of the HoUsing Program, the annual distribution of the
units to be assisted and estimates of the expenditures of moneys for each program is provided on. Tables 8a
and 8b. The timing of expenditures and the amounts of units assisted are both as identified in the Strategy.
5. Proportional Expenditure for Low and Very Low Income Housing [Section 33334.4]
The Projects are subject to the CRL mandate that the Agency have a policy of expending
moneys in the Housing Fund in proportion to the unmet need for housing for persons and families of Iow and
very Iow income. Based on the Comprehensive Affordable Housing Strategy, the following are the allocations
for the City of Tustin for the categories of very Iow, Iow and moderate income.
City of Tustin
Fair Share Housing Allocation
Income Units Percent
Very Low 414 20 %
Low 365 18 %
Subtotal 779 38 %
Moderate 1.301 63 %
Total 2,080 100 %
Source: Tustin Affordable Housing Strategy
It is the policy of the Agency to spend 38 percent of the Project Areas' Housing Fund
· money on housing for persons of very Iow and Iow income and 63 percent on moderate income housing. While
the Agency intends to spend the above percentage of its Housing Fund on housing for persons of low and very
Iow income, the target is intended to be met over the life of the redevelopment project and not strictly on an
annual 'basis. In some years, more or less moneys may be spent on housing for persons with Iow and very iow
income, depending on housing opportunities, market conditions and other restricting factors. The Agency will
monitor its expenditures of Housing Fund money in order to comply with legal requirements over the life of the
Project.'
C. Residential Units to be Developed in Projects
Both of the Agency's Project Areas were adopted after January 1, 1976. As a result, housing
development in the Projects is subject to the housing production requirements of Section 33413 (b). These
requirements mandate that certain percentages of all housing developed in the Projects be affordable to iow-
mod persons and families.
Tustin Community Redevelopment Agency
Town Center and South/Central Redevelopment Projects
17'
Implementation Plan
(fiscal years 1995-96 through 1999-2000)
Table 8a
Tustin Community Redevelopment Agency
South Central Redevelopment Proiect Area
E~;TIMATE OF AGENCY ASSISTED HOUSING UNITS
First-Time Homebuyers Program
Mortgage Credit Certification Program
Total Units
Total Expenditures
Subtotal
Preservation of Existing Affordable Units
Preservation of Orange Gardens Apartments
Total Units
Total Expenditures
Subtotal
Rehabilitation of Existing Housing Stocl~
Owner-Occupied Rehabilitation Loans & Grants
Total Units
Total Expenditures
Plan Period
.1 ?~o5-96 1996-9~ 1 ~7-98 1 ~o~8-99 1 .o99-00
111 0 111 0 111 333
$35,000 $0 $35.000 $0 $35,000 $105.000
$35,000 $0 $35,000 $0 $35,0O0
0 160 0 0 0
$0 $500,000
$0 $500,000 $0 $0 $0
$105,0O0
160
$500,0O0
5 5 5 5 5 25
$75,000 $75,000 $75,000 $75,000 $75,000 $375,000
2-4 Unit Rehabilitation and Resale
Total Units 8 0 8 0 8
Total Expenditures $91,000 $0 $91,000 $0 $91,000
Rental Rehabilitation Loans and Grants
Total Units 20 20 20 20 20
Total Expenditures $300,000 $300,000 $300,000 $300,000 $300,000
2-4 Unit Rehabilitation and Rental
Total Units 0 0 0 6 0
Total Expenditures $0 $0 $0 $528.000 $0
Subtotal
24
$273,000
lOO
$1,500,0O0
6
$528,000
$466,000 $375,000 $466,000 $903,000 $466,000 $2,676,000
Total Number of New, Rehabilitated
or Price-Restricted Units
144 185
144 31 144 648
(1) Reflects es'tJmates of units to be assisted utilizing Housing Set Aside funds as shown in the CiTY OF TUSTIN COMPREHENSIVE AFFORDABLE
HOUSING STRATEGY.
HOUS_CF.XLS
11,'29/94_kh
APPENDIX A
LOCATION OF REQUIRED REDEVELOPMENT ELEMENTS OF THE IMPLEMENTATION PLAN
LOCATION IN
REQUIREMENT
IMPLEMENTATION
PLAN
1) Specific Goals and Objectives of the Agency for the Project Area Pages 5 & 8
During the Next Five Years ......................................................................................................
2) Specific Projects and Expenditures Proposed to be Made · Pages 6 & 9
During the Next Five Years ......................................................
3) Explanation of How the Goa!s and Objectives, Projects and
Expenditures will Eliminate Blight within the Project Area ............................................. Pages 5, 7, 9 & 11
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APPENDIX B
REDEVELOPMENT LOW- AND MODERATE-INCOME HOUSING REQUIREMENTS
An agency's major housing responsibilities fall under four broad categories including: li the set-aside of 20
percent of tax increment revenue for low and moderate income housing (Sections 3333,~.2 and 3333~,.6); 2) the
creation of housing affordable to Iow and moderate income persons and families based on the production of all
new and substantially rehabilitated dwelling units (Section 33413); 3) the replacement of low and moderate
income dwelling units removed as a result of Agency activity (Section 33~,13); and ,~) the proportional
expenditure from the 20 percent set-aside on housing for Iow and very Iow income persons based on
community need (Section 33334.4).
The following summarizes an agency's redevelopment housing resl~onsibilities.
A. Housing Set-Aside Fund
The Community Redevelopment Law (Section 33334.2) requires, for every redevelopment plan
adopted or amended to add territory on or after January 1, 1977, no less than 20 percent of the tax increment
received by the agency from a redevelopment project (or area added by amendment) be set aside for
increasing, improving and preserving the community's supply of Iow and moderate income housing. The
revenues may be expended inside or outside of a project area. if expended outside a project area, a resolution
must be adopted stating outside expenditures are of benefit to the project area. The set-aside funds are to be
held in a separate Low and Moderate Income Housing Fund until used. Any unexpended amount in the Low
and Moderate Income Housing Fund that exceeds the greater of one million dollars or the aggregate amount
deposited during the preceding four fiscal years (beginning in 1989'90) becomes excess surplus.
For redevelopment plans adopted before January 1, 1977, the 20 percent set-aside is required
beginning in the 1985-86 fiscal year. HOwever, an agency may reduce and defer its Iow an moderate income
housing deposit requirement in any fiscal year if it finds that the reduction is necessary to make payments on
"existing obligations" (i.e., indebtedness incurred prior to January 1, 1986), and for fiscal years through 1995-96
only to fund "public and private projects, programs or activities" approved by the agency prior to January 1, 1985
(Section 33334.6). If such a reduction is made, a Statement of Existing Programs, or a Statement of Existing
O[:)ligations, or both must be adopted by September 1, 1986 and filed with the Department of Housing and
Community Development. The 20 percent set-aside or a portion of it can be only. be deferred until July 1, 1996,
at which time full deposits must be made. A deficit elimination plan must be prepared to outline the agency
intentions on expending the amount equal to the difference between the required 20 percent tax increment set-
aside and the actual amount deposited, if any, for each year a deposit was reduced.
B. Housing ProductionJinclusionary Housing
The Community Redeveloprn'ent Law (section 33413(b)) requires, for redevelopment plans
adopted or amended to add territory on or after January 1, 1976, at least 30 percent of all new and substantially
rehabilitated dwelling units developed by an agency be available at affordable housing costs to persons and
families of Iow or moderate income. Not less than 50 percent .of those units (15 percent of th~ total) are
required to be available and occupied by very iow income households. This requirement applies only to units
developed by an agency directly. For other housing developed or substantially rehabilitated by public or private
entities or persons' other than the agency, 15 percent must be affordable to persons and families of Iow or
moderate income. Not less than 40 percent of those units (six percent of the total) must be affordable to very
iow income households. These inclusionary housing requirements are not necessarily applicable to each
individual housing development, but may be counted in the aggregate. The agency shall cause these required
inclusionary housing units to be built inside or outside the redevelopment project area, but shall cause, for units
developed or substantially rehabilitated by the private sector, two units outside a project area for each unit that
otherwise would have had to be b. vailable inside a project area.
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C. Replacement Housing
The Community Redevelopment Law (Section 33413(a)) requires, for redevelopment plans
adopted or amended to add territory on or after January 1, 1976, that for all dwelling units housing persons and
families of Iow and .moderate income which are destroyed or removed, from the Iow and moderate income
housing market as part of a redevelopment p. roject (involving agency participation), the agency shall rehabilitate,
develop or construct an equal number of replacement dwelling units with an equal number of bedrooms. The
replacement units shall be constructed or rehabilitated within four years of their removal and can be replaced
anywhere within the territorial jurisdiction of the agency. For units removed after September 1, 1989, 75 percent
of the replacement units shall replace units available at affordable housing cost in the same income level as the
persons displaced from those units. The agency has no replacement housing obligations for units removed by
the private sector acting alone. Beginning January 1, 1996, for all Iow and moderate income housing unit
removed as part of a redevelopment project, regardless of when the redevelopment plan was adopted, the
agency is subject to the replacement housing requirement. Units can not be removed from the Iow and
moderate income housing market until the agency has prepared a replacement housing plan which includes,
among other requirements, the general location for replacement housing and an explanation of adequate
means of financing the replacement units.
D. Housing Expenditure' by Community Affordability Need
The Community Redevelopment Law, in Section 33334.4, provides some targeting of the
expenditures of moaeys in the Low and Moderate Income Housing Fund. It is the apparent intent of the Section
that redevelopment agencies direct Housing Fund expenditures such that moneys are distributed in measurable
proportion between that spent on moderate income housing and that' spent on iow and very iow income
housing. The proportion is to be determined for each community on the basis of the unmet need for housing
among the income categories. The law does not provide guidance as to how the unmet need is to be.
determined. A reasonable basis appears to be the allocation of'housing need prepared by the applicable
association or council of governments. Using this determination, a redevelopment agency is to have a policy
that moneys from the Housing Fund are to be expended in a percentage that is not less than the allocated units
or iow and very Iow income persons bears to the total of allocated units for Iow, very iow and moderated income
persons. There is no requirement to achieve this proportion over any shorter period than the duration of the
agency's activity in expending money from the Housing Fund.
APPENDIX C
LOCATION OF REQUIRED HOUSING ELEMENTS OF THE IMPLEMENTATION PLAN
LOCATION IN
REQUIREMENT
IMPLEMENTATION
PLAN
1) The Low and Moderate Income Housing Fund:
a) The Amount Available in the Fund ........................................................................................... Page 21
b) Estimated Deposits Over the Next Five Years ........................................ , ....... : .............. Pages 21 &'22
c) Estimates of Units to be Assisted During Each of the Next Five Years ......................... Pages 23 & 24
d) Estimates of Expenditures During Each of the Five Years ............................................ Pages 23 & 24
e) Proportional Expenditure Based on Unmet Need .......................................................... Pages 19 & 20
2) Housing Productio.n Requirements:
a) Estimated Units to be Developed or Purchased
(Over Life of the Plan / Next Ten Years) .................................................................................. Page. 18
b) Estimates of Units of Low-Mod Housing Required Due to
Privately Developed Housing (the 15 percent Requirement) ......................................... Pages 17 & 18
c) The Number of Units of Low-Mod Housing Which have been DevelOped
Which .Meet the 15 percent Requirement ...................................................................... Pages 17 & 18
d) Estimates .of the Total Number of Agency Developed Units
to be Developed in the Next Five Years ........................................................................ Pages 20 & 21
e) Estimates of the Number of Agency Developed Low-Mod Units
During the Next Five Years ............................................................................................ Pages 20 & 21
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1 P~ESOLIITION NO. RDA 94-16
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'A RESOLUTION OF THE REDEVELOP~ENT AGENCY OF
THE CITY OF TUSTIN, C~fLIFOR/qIA, APPROVING THE
FIVE YEAR IMPLEMENTATION PLA~ FOR THE TOWN
CENTER AND SOIYI/R CENTR~b REDEVE~LOPMENT PROJECT
AREAS.
The Redevelopment Agency finds and determines as
follows:
no
That the City Council adopted the Town Center
Redevelopment 'Plan on November 22, 1976 by
Ordinance No. 701 and subsequently amended the
Redevelopment Plan on September 8, 1981 by
Ordinance No. 855, further amended the
Redevelopment Plan on March 20, 1989 by
Ordinance No. 1021 and further amended the
Redevelopment Plan on November 21, 1994 by
Ordinance No. 1141;
B. That the City Council adopted the' South
Central Redevelopment Plan on August !, 1983
by Ordinance No. 890 and subsequently amended
the Redevelopment Plan on July 15, 1985 by
Ordinance No. 939, and further amended the
Redevelopment Plan on November 21, 1994 by
·
· .'-' .Ordinance No. 1142; ....
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C.' "That Section 334'9'0(a) (i) (A) Of the Community
Redevelopment Law requires the Agency to adopt
a Five (5) Year Implementation-Plan, outlining
specific programs, including potential
projects and expenditures proposed by the
Agency to be made during the next five 95)
years;
That Section 33490(a) (1) (B) the Community
Redevelopment Law states that the adoption of
an Implementation Plan is not a "prOject''
within the meaning of Section 21000 of the
Public Resources Code and is not subject to
environmental review.
E .
That a public hearing was.duly noticed, called
and held by the Redevelopment Agency on
December 5, 1994;
II. NOW, THEREFORE, the Redevelopment Agency of the~ City of
Tustin approves a Five (5) Year Implementation Plan for
the Town Center and South CentrJl Redevelopment Project
Areas.
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'Resolution No. P~A =4-!6
Page 2
PD~SED AND ~ZDOPTED by the Redevelopment Agency of the City of
Tustin at a regular meeting held on the--5th day of December, 1994.
9~~ C!~rk
STATE OF CALIFORNIA )
!! COUNTY OF OR3INGE )
-CITY OF TUSTIN )
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~O~S R. S~A~EnnIo
Redevelopment Chairperson
SS
CERTIFICATION FOR .P_DA RESOLUTION NO. 94-16
M~Y E. WYNN, City Clerk'and ex-off'icio Clerk of the. City Council
of the City of Tustin, California, does hereby certify that the
whole number of the members of'the Redevelopment Agency of the City
of Tustin is five; that the above and foregoing R DA Resolution No.
94-16 was duly and regularly introduced, passed and adopted at a
regular meeting of the Redevelopment Agency held on the 5th day of
December, 1994, by the following vote:
AGENCY MEMBER AYES: SALTkRELLI, POTTS, DOYLE, THOMAS, WORLEY
AGENCY MEMBER NOES: NONE
AGENCY MEMBER ABSTAINED: NONE
AGENCY MEMBER ~SE-N~f: NONE
_~. Wyr~n, City Clerk
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